Newly assembled vehicles are parked at the Toyota Motor Manufacturing plant in Baja California, Tijuana, Mexico May 31, 2019. REUTERS/Jorge Duenes
(Reuters) – Mexico sought formal consultation with the United States on Friday over the interpretation and application of tougher content rules for automobiles set out in the USMCA trade pact.
In May, Mexico voiced disagreement over the issue in a three-way online virtual meeting when it cited differences with the United States methods. Canada and Mexico use more flexible interpretations. read more
“Mexico has identified a divergent position between our governments on the interpretation of … provisions on rules of origin for the automotive sector,” Economy Minister Tatiana Clouthier said in a letter.
In her letter on Friday to U.S. Trade Representative Katherine Tai, Clouthier said Mexico wanted to avoid or resolve a possible dispute.
The United States-Mexico-Canada Agreement (USMCA), the successor to the North American Free Trade Agreement (NAFTA), requires 75% North American content for a vehicle to be considered as being from North America.
The same percentage will apply for so-called essential parts from July 1, 2023, up from 69% now, and compared to 62.5% under the previous trade pact.
But once the level of essential parts hits 75%, it is considered 100% and should be counted as such towards the overall value of the automobile, Mexico says.
Its consultation request is the first non-contentious stage of a dispute resolution mechanism provided for in Chapter 31 of the pact. An industry expert says such talks must be held within 30 days, in this case by Sept. 20.
The United States is reviewing the request, said U.S. Trade Representative spokesman Adam Hodge.
“We are reviewing Mexico’s request for consultations and remain committed to fully implementing the USMCA, including the strong auto regional content requirements to which we all agreed,” he said.
Source: Reuters
Comments
more recommended stories
Valladolid, Yucatan and Valladolid, Spain strenghten ties at Madrid’s FITUR 2022“Valladolid has enormous development potential, which.
A truck driver drives 20 km in the opposite direction in the Mérida-Cancún Hwy (Watch Video)During its journey, the truck almost.
Mauricio Vila to watch closely the Maya Train Project construction works in YucatanGovernor Mauricio Vila Dosal held a.
Morelos Governor Cuauhtémoc Blanco denounces narco-political network in the stateLots of politicians have ties to.
Villa María and its cenote, the natural attraction inside the historic center of MéridaOnly three known cenotes remain within.
-
Yucatan beekeepers position the state in first place nationwide in honey production
Among the Maya inheritances that Yucatan.
Vila and Fonatur Director reaffirm their commitment to continue promoting projectsVila Dosal and the federal official.
Mexican Navy will take control of the security at Mérida AirportThe Mexican Navy (SEMAR) will be.
Yucatan Restaurant Sector severely affected by the unstoppable price increaseThe restaurants are resisting this increase.
Expansion of the Electric Network in Chelem, YucatanProgreso City Council, will expand the.
Thanks for the fascinating article, I engage in the development and production of cars on the Engre.co marketplace and I am a professional in industrial engineering, and I want to say that Mexico has correctly decided that it is necessary to tighten the rules for maintaining cars, I think that an overabundance of cars will lead to a waste of resources of our planet and to environmental concerns, so Mexico is justly raising taxes.